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OF
GENERAL MOTORS
CORPORATION
YEAR ENDED DECEMBER 31
1928
AS WILL BE SUBMITTED TO STOCKHOLDERS
AT THE ANNUAL MEETING TO BE HELD IN
WILMINGTON, DEL., WEDNESDAY, MAY 8,1929
NEW YORK k3 DETROIT
U. S. A.
LAMMOT DU PONT, Chairman
ALFRED P. SLOAN, JR., President CHARLES S. MOTT, Vice-President
ARTHUR G. BISHOP, Vice-President DEWITT PAGE, Vice-President
DONALDSON BROWN, Vice-President JOHN L. PRATT, Vice-President
CHARLES T. FISHER, Vice-President JOHN J. RASKOB, Vice-President
FRED J. FISHER, Vice-President JOHN T. SMITH, Vice-President
LAWRENCE P. FISHER, Vice-President EDWARD T. STRONG, Vice-President
WILLIAM A. FISHER, Vice-President ALFRED H. SWAYNE, Vice-President
CHARLES F. KETTERING, Vice-President MEYER L. PRENTIS, Treasurer
WILLIAM S. KNUDSEN, Vice-President ALBERT BRADLEY, General Asst. Treasurer
R. SAMUEL MCLAUGHLIN, Vice-President ERNEST W. PROCTOR, Comptroller
JAMES D. MOONEY, Vice-President THOMAS S. MERRILL, Secretary
GEORGE F. BAKER, JR.
DONALDSON BROWN
WALTER S. CARPENTER, JR
HENRY F. DU PONT
DONALDSON BROWN
CHARLES T. FISHER
BROADWAY AT 57~~ STREET
NEW YORK, N. Y.
CHASE NATIONAL BANK
NEW YORK, N. Y.
,1,‘ j ‘; I -I -*-*. !; f ; ’ 1 ‘, : , j /
IR~N~E DU PONT
LAMMOT DU PONT
PIERRE S. DU PONT
FRED J. FISHER
JUNIUS S. MORGAN, JR.
SEWARD PROSSER
ALFRED P. SLOAN, JR.
GEORGE WHITNEY
JOHN L. PRATT
ALFRED P. SLOAN, JR.
Du PONT BUILDING
WILMINGTON, DEL.
WILMINGTON TRUST Co.
WILMINGTON, DEL.
LAMMOT DU PONT, Chairman President, E. I. du Pont de Nemours c’ Co.
Wilmington, Del.
GEORGE F. BAKER, JR. Vice-Chairman, First National Bank New York, N. Y.
R. SAMUEL MCLAUGHLIN President, General Motors o.f Canada, Limited Oshawa, Ontario, Canada
ARTHUR G. BISHOP President, Genesee County Savings Bank Flint, Mich.
DONALDSON BROWN Vice-President, in charge 0.f Finance New York, N. Y.
WALTER S. CARPENTER, JR. Vice-President, E. I. du Pontde Nemours & Co. Wilmington, Del.
CURTIS C. COOPER President, General Motors Acceptance Corp. New York, N. Y.
HENRY F. DU PONT Director, E. I. du Pont de Nemours &? Co. Winterthur, Del.
1~2~2~ DU PONT Vice-Chairman, E. I.du Pontde Nemours U Co. Wilmington, Del.
PIERRE S. DU PONT Chairman, E. I. du Pont de Nemours ti Co. Wilmington, Del.
CHARLES T. FISHER Vice-President, General Motors Corporation Detroit, Mich.
FRED J. FISHER Vice-President, General Motors Corporation Detroit, Mich .
LAWRENCE P. FISHER President, Cadillac Motor Car Company Detroit, Mich.
WILLIAM A. FISHER President, Fisher Body Corporation Detroit, Mich.
LOUIS G. KAUFMAN President, Chatham Phenix National Bank and Trust Company New York, N. Y.
WILLIAM MCMASTER Chairman, Canadian Industries, Limited Montreal, quebec, Canada
JAMES D. MOONEY Vice-President, in charge of Export Group New York, N. Y.
JUNIUS S. MORGAN, JR. J. P. Morgan &J Co. Ne~w York, N. Y.
CHARLES S. MOTT Vice-President, General Motors Corporation Detroit, Mich.
DEWITT PAGE President, New Departure Manufacturing Co. Bristol, Corm.
JOHN L. PRATT Vice-President, in charge of Accessory and Parts Divisions, General Motors Corporation New York, N. Y.
SEWARD PROSSER Chairman, Bankers Trust Company New York, N. Y.
JOHN J. RASKOB Vice-President, General Motors Corporation Wilmington, Del.
ALFRED P. SLOAN, JR. President New York, N. Y.
JOHN T. SMITH Vice-President and General Counsel New York, N. Y.
ALFRED H. SWAYNE Vice-President Chairman, General Motors Acceptance Corp. New York, N. Y.
CHARLES F. KETTERING Vice-President, General Motors Corporation Detroit, Mich.
WILLIAM S. KNUDSEN President, Chevrolet Motor Company Detroit, Mich.
GEORGE WHITNEY J. P. Morgan &s Co. New York, N. Y.
CLARENCE M. WOOLLEY Chairman and President, American Radiator Companv
SIR HARRY MCGOWAN
1 -
New York, N. Y.
President and Deputy Chairman, Imperial Chemical Industries, Ltd. London, England
OWEN D. YOUNG Chairman, GeneraI Electric Company New York, N. Y.
March 30, 1929
To THE STOCKHOLDERS:
The consolidated balance sheet and income account of General
Motors Corporation and subsidiary companies for the year ended
December 31, 1928 are submitted herewith. Attention is called to the
fact that certain subsidiaries and affiliated and miscellaneous com-
panies are not consolidated in the accounts of the Corporation. A list
of these companies, not consolidated, is displayed on page 31.
General Motors Corporation net earnings for the year 1928 were
$276,468,108. Th’ IS is after adding $4,123,838 which is the Corpora-
tion’s proportion of the earnings and losses of subsidiary and affiliated
companies not consolidated but accruing to General Motors Corpora-
tion in excess of dividends received. These net earnings compare with
$235,104,826 for the year 1927, an increase of $41,363,282 or 17.6%.
After paying regular dividends on preferred and debenture stock
requiring $9,404,756 for the year, there remains $267,063,352, being
the amount earned on the common shares outstanding. This is
equivalent to $15.35 per share on the $25.00 par value common stock
outstanding at December 31, 1928, or $6.14 per share on the new $10.00 par value common stock now outstanding. This also compares
with $12.99 per share earned in 1927 on the $25.00 par value common
stock, or the equivalent of $5.20 per share on the present issue of
$10.00 par value common stock.
By comparison with previous years it will be noted that 1928 was
by far the most successful year that the Corporation has yet enjoyed.
During the last four consecutive years net earnings have shown a
substantial increase each year over the previous year. Although the
6
record of earnings is otherwise displayed in detail in this report, for
the sake of ready reference the following comparison is submitted:
Year Net Increase over
Earnings PreviousYear
1925 :&l6,016,277j $64,392,78 7
1926 ; 186,231,182 ‘i 70,214,905
1927 ” 235,104,826 i 48,873,644
1928 ,276,468,108 1 41,363,282
The regular quarterly dividend on the $25.00 par value common
stock which was established December 12, 1927 at the rate of $5.00
per share per annum was continued throughout the year 1928. On
July 3, 1928 an extra dividend of $2.00 per share was paid. On
January 4, 1929 an extra dividend of $2.50 per share was paid to
stockholders of record November 17, 1928. There resulted a total
declaration of cash dividends on the common stock in 1928 of
$165,300,002, which compares with the total declaration of cash
dividends on the common stock in 1927 of $134,836,081. On December
10, 1928 there was authorized by the stockholders an exchange of
two and one-half shares of newly authorized $10.00 par value common
stock for each share of $25.00 par value common stock then out-
standing, which exchange became effective in January 1929.
After providing for the disbursements on account of dividends as
stated above, there was available out of earnings for reinvestment in the
business, including the Corporation’s proportion of the earnings and
losses of subsidiary and affiliated companies not consolidated but accru-
ing to General Motors Corporation in excess of dividends received, a
total of $X01,763,350. This compares with $91,159,415 for the year 1927.
Cash, United States Government securities and other marketable
securities at the close of the year amounted to $215,905,230. This
compares with $208,176,198 at the close of the previous year. Sight
drafts were $9,273,824; inventories $196,692,868; total current assets
$468,809,287; current liabilities $X73,020,983. This leaves an excess
of current assets over current liabilities of $295,788,304, which com-
pares with $272,923,976 at the close of the previous year. The total
of capital stock and surplus increased $97,639,511. Total real estate,
plant and equipment accounts show an increase of $62,513,646 over
the previous year, representing an expansion in the Corporation’s
facilities, the purposes and necessities of which are explained else-
where in this report. Reserves for depreciation of real estate, plants
and equipment show a net increase of $20,807,173 over the previous
year. Investments in subsidiaries and affiliated and miscellaneous
companies not consolidated increased $19,557,110, the details of
which are shown elsewhere in this report.
IT WAS stated in the annual report a year ago that the year 1927 had
resulted in a new record. It is gratifying to be able to record the same
statement for the year 1928. As a matter of fact, for the fourth
consecutive year, new records have been established for sales of
General Motors cars and trucks to dealers as well as for sales of cars and
trucks to users by General Motors dealers and distributing organiza-
tions throughout the world. There is displayed here, for ready reference,
a comparison of dealers sales to users for the years indicated:
Year
Dealers Sales of Cars and
Trucks to Users Increase over Previous Year
1925 827,056 169,488 1926 1,215,826 388,770 1927 1,554,577 338,75 1 1928 1,842,443 287,866
During 1924 the Corporation manufactured approximately one car
in every six produced in the United States and Canada. In 1925 this
was increased to one car in every five. In 1926 a gain was made to
approximately one car in every four and in the year 1927 the Cor-
poration produced forty-four cars out of every one hundred. During
the year 1928 the Corporation produced approximately forty cars
out of every one hundred produced in the United States and Canada.
During the year 1927 the production of the automotive industry was
subnormal due to the absence from the market for a large part of the
year of a quantity producer. The re-entry of that producer into the
market in 1928 necessarily had an important influence on the sta-
tistical position of the industry and the relative position of the other
manufacturers. This fact, together with the generally prosperous
economic conditions prevailing, resulted in an important increase in
total units produced. The fact that the Corporation was able to
so nearly maintain its record proportion of the total volume attained
in 1927 is, it is believed, a tribute to the quality of its products
and the effectiveness of its engineering, manufacturing and selling
organizations.
The Corporation’s sales for the year 1928, excluding all inter-
company items, amounted to $1,459,762,906 as compared with
$1,269,519,673 for the year 1927, or an increase of 15.0%. It was
pointed out in the last annual report that the corresponding increase
in 1927 over 1926 was $211,366,335 or 20.07& It will be noted, there-
fore, that from the standpoint of increase in unit and in dollar volume,
as well as in profits as already dealt with, the Corporation continues
to make progress.
The outstanding event of the year under review unquestionably
was the culmination of a program which had been under development
for some time -the introduction by Chevrolet of a six-cylinder car
within the price range of the four. The Corporation’s policy of
offering to the public the maximum possible value in each price class,
is well established. As the number of units produced increases, the
possibilities of adding value at the same price likewise increase.
Recognizing some two or three years ago the potential possibilities of
the Chevrolet Motor Division, a study was inaugurated to determine
whether it would be possible to give the world a six-cylinder car
within the price range of the Chevrolet four-cylinder car. The ad-
vantages of a six-cylinder over a four-cylinder engine are too well
known to warrant any detailed discussion. It might be stated, more-
over, that although much study has been given the subject, auto-
motive engineers have not as yet been able to devise ways and means
to secure in a four-cylinder engine the smoothness of performance and
flexibility possible in the six.
Intensive research work was started, supported later by the en-
gineering and production departments, and it was finally decided
that the program was practical.
The magnitude of the task of carrying out a change which involved
such a diversified character of complicated processes of manufacture
can not be adequately described. As a matter of fact, considering the
time in which it was accomplished, it is unquestionably one of the
most spectacular industrial transformations ever accomplished. On
October lst, Chevrolet completed its four-cylinder engine-building
program although assembly operations continued until October 25th.
From October 1st until November 15th the task of the organization
was to install new machinery and rebuild old machinery for the new
work as well as to educate its forty thousand direct employes in an
entirely different problem. It had been recognized that all risk of
delay must be reduced to a minimum, and therefore, early in 1928
an experimental motor plant, complete from beginning to end, was
developed to test out the new machinery, tools, jigs and fixtures
incident to the new program.
In addition to Chevrolet’s own organization the change involved
more or less readjustment in various other General Motors Divisions.
The most important part of this supplementary program took place
within the Fisher Body Division. It was recognized that, in order
that the forthcoming model might embody every feature possible in
the way of attractiveness of appointment and appearance, a complete
re-design of bodies was essential. This involved complete re-tooling,
the magnitude of which is difficult to appreciate without direct
contact with the work itself. The modern motor car, irrespective of
price class, must not only have all the performance characteristics
necessary to meet present road conditions, but must be outstanding
in appearance and in luxury of appointment as well.
So efficiently was the work planned and accomplished that within
approximately sixty days after closing down, the main motor plant
was in production on the new model. In the month of December sixty
thousand six-cylinder motors were produced, or an average of more
than two thousand per day. In the month of January nearly ninety
thousand cars of the new model were produced. In February produc-
tion was in excess of one hundred and twenty thousand cars.
The complete change involved eleven Chevrolet manufacturing
plants and nine assembly plants in the United States, the Canadian
manufacturing and assembly operations, some twenty assembly plants
overseas, as well as the many Fisher Body and accessory and parts
plants. An important step in automotive progress is thus recorded.
It could not have been recorded, however, without a full appreciation
on the part of every one concerned as to the part he had to play in
the program. The job required more than engineering, machinery,
materials and subs tan tial financial resources-it necessitated the
willingness of each to give all that he had to give for the promotion
of the cause. The stockholders have reason to be pleased with such
an accomplishment.
In addition to the development of the new six-cylinder Chevrolet,
the performance characteristics and attractiveness of appearance of all
General Motors cars were improved. This had an unfavorable influence
on earnings, due to the fact that several operations were closed down
for model changes and production schedules restricted for a period.
As has been previously pointed out, real estate, plant and equip-
.
ment accounts show a substantial increase over the previous year. A
part of this additional investment of capital was essential in order to
increase the capacity of the Corporation’s motor car operations, which
has been reflected in their increased sales. Additional capital was also
employed in increasing the capacity of the accessory operations
essential to the proper support of the Corporation’s motor car
program. In addition to all this, the Corporation is continually
broadening the scope of its manufacturing operations by producing
more and more of the materials and components entering into its
completed products. This required still additional capital. Increased
investments in subsidiaries and affiliated and miscellaneous com-
panies not consolidated (therefore not reflected in the real estate,
plant and equipment accounts) have been made, some closely allied
to and some entirely distinct from and having no relation to motor
car operations. Additional investment in working capital has
also been necessary to parallel the increases in manufacturing
plant.
To amplify the above, further attention is called to the fact that
during the last four years $425,854,930 of additional capital has been
invested in the Corporation’s various operations. Of this amount
$314,018,732 h as resulted from earnings in excess of dividends paid,
including the Corporation’s proportion of earnings and losses of
subsidiary and affiliated companies not consolidated but accruing
to General Motors Corporation in excess of dividends received,
$29,104,167 from the sale of $25,000,000 additional preferred stock
and $82,732,03 1 incident to the acquisition in 1926 of the minority
interest of Fisher Body Corporation. This additional capital has, in
general, been employed in the following manner:
(a) Production facilities of the car manufacturing divisions
have been materially expanded. There has resulted the abil-
ity to manufacture a larger number of units on which the
aggregate profit has been increased and the cost per unit
reduced, on account of this increased volume.
(b) Production facilities of the accessory manufacturing
divisions have likewise been expanded in proportion to the
increased demands made by the car manufacturing divisions
with results similar to those mentioned above.
(c) The scope of the Corporation’s manufacturing operations
has been broadened by producing more and more of the com-
ponents entering into its completed products. In addition to
the satisfactory return on the increased capital thus em-
ployed, there has resulted, in general, a lower cost and a
better product, thus reacting favorably on the Corporation’s
general program.
(d) Merchandising operations have been expanded; i.e., the
Corporation’s products have been carried closer to the ulti-
mate consumer. This applies almost entirely to the Corpora-
tion’s overseas operations where, through the establishment
of assembly plants and warehousing operations in various
parts of the world, an increased proportion of the Corpora-
tion’s products are sold directly to dealers, resulting in a
more satisfactory relationship and a lower price to the
ultimate user.
(e) Capital has been employed in other productive enter-
prises in part allied to the Corporation’s general activities.
Thus large sums have been invested in General Motors
Acceptance Corporation, Frigidaire Corporation, General
Exchange Insurance Corporation, and in other activities.
These investments contributematerially to the total earnings
of the Corporation.
The extent to which it may be possible in the future to employ
additional capital in any of the above ways will govern, all other
things being equal, the extent to which the Corporation’s aggregate
profits may be still further increased. Notwithstanding the rapid
expansion of the industry of which the Corporation’s major operations
are a part and the very intensive development which that industry
has attained, yet each year offers opportunities for further develop-
ment. The policy of the Corporation will be to avail itself of such
opportunities as appear to be safe and profitable.
It has been pointed out in previous annual reports, and it is repeated
for emphasis, that the total earnings of the Corporation must not be
taken as a measure of its earnings from the motor car divisions.
Notwithstanding the fact that the Corporation’s motor car operations
are equally if not more completely self-contained than those of
competitors, yet the motor car operations contribute only about one-
half of the Corporation’s total profits. The expansion of the Corpora-
tion’s activities aside from motor car operations, as outlined above,
has contributed importantly to the increase in net profits of the Cor-
poration and it is to be expected that this tendency will continue from
year to year.
It is hoped that the improvement in the Corporation’s position, as
measured by the number of cars produced and sold, as well as by
turnover of capital, net profits and financial position, will continue
to be satisfactory to the stockholders. Yet, perhaps, it should be
stated that even more gratifying and encouraging to the management
is the development of procedures and policies dealing with the
operating problems which a business of this magnitude must neces-
sarily encounter. These developments are bound to have a tremendous
influence in continuing progress as well as stabilizing and solidifying
the general position of the Corporation throughout the world.
The policy of the Corporation, as has been previously outlined, is
to build a line of cars from the lowest to the highest price justified by
quantity production. The tremendous growth in the number of cars
sold affords an opportunity to offer to the public a car in every price
class and also, as circumstances justify, to offer cars differing in type
and characteristics within the same price class, thus attracting
additional business to the Corporation. As a matter of fact, it is
within the scope of the manufacturing facilities of the Corporation to
make practically any type or design of motor vehicle. Its engineering
policy will not be confined to any particular design or construction,
although only those designs or constructions will be offered to the
public which embody sound principles and afford safe, durable,
economic and effective transportation.
REFERENCE HAS been made in previous reports to the expansion which
has taken place from year to year in the Corporation’s business over-
seas. Overseas sales in units during the year under review aggregated
282,157 cars and trucks, representing a wholesale value of $252,152,284.
The trend during the past four years is presented herewith:
Year
1925
1926
1927
1928
Number Net of Cars Increase over Sales
and Trucks Previous Year VC’holesale
100,894 36,049 $ 77,109,696
118,791 17,897 98,156,088
193,830 75,039 171,991,251
282,157 88,327 252,152,284
Increase over Previous Year
$26,180,374
21,046,392
73,835,163
80,161,033
The very rapid increase in overseas business and the carrying of the
organization nearer to the user has required the investment of large
amounts of additional capital on which a satisfactory return is being
made.
*One of the most gratifying and encouraging features of the Cor-
poration’s progress is its gain in strength in overseas countries. It is
recognized that the curve of development within the United States
must necessarily flatten out-as a matter of fact it already has-
as the years progress. The opportunity for further progress in all
overseas countries, however, is and will continue to be great for many
years to come. Such a development brings with it important and
difficult problems of organization. To build a personnel to handle an
overseas business of this magnitude with the necessary standards of
efficiency and effectiveness is a tremendous undertaking. The stock-
holders have a right to be pleased with what has been accomplished.
Although the Corporation has a dominating position in practically
all overseas countries, it is hoped and believed that this position can
be strengthened still further. The policy referred to in previous reports,
of making the Corporation a real factor in the industrial life of each
country in which it operates, will be continued. This means the
establishment by the Corporation of local organizations, supported
by assembly plants as increasing volume justifies. Such a policy
brings the Corporation’s own organization in closer contact with the
ultimate user and enables prices to be better controlled and stabilized
in the interest of the user. Inventories can be handled in such a
manner that the most satisfactory results are obtained. All this
means a more effective operation. It enables the Corporation also to
deal more constructively with that most important factor-sersice.
THIS ORGANIZATION continues to effectively support the selling di-
visions in furthering the sale of General Motors products at home and
abroad. During the year the Corporation subscribed to additional
capital stock of General Motors Acceptance Corporation to the
amount of $6,250,000. The total capital, surplus and undivided
profits of General Motors Acceptance Corporation is now $64,239,934.
The extent of its operations throughout the world may be visualized
when it is stated that, in order to contact as closely as possible with
the Corporation’s dealers and distributors, it conducts fifty-four
branch offices situated in various cities in the United States. For the
same purpose it operates in eight points in Canada and in fifteen
overseas countries. It requires an organization of about six thousand
individuals to conduct its business. Total volume handled in 1928
was close to $1,000,000,000. The financial position and standing of
this Company as a banking institution is unquestioned. This has
16
resulted from a strict adherence to sound principles of policy as well
as from the highly efficient manner in which the business has been
administered.
As HAS been recorded in previous reports, the Corporation effected
a consolidation between the Yellow Cab Manufacturing Company
and the Truck Division of the Corporation in the year 1925. As a
result of this consolidation the Corporation obtained a controlling
interest in the common stock equity of the Yellow Truck & Coach
Manufacturing Company, organized at that time. The operations of
this Company have, so far, been disappointing. It was recognized
that a complete reconstruction of the Company’s products and manu-
fat turing facilities was essential. A program was undertaken that
provided, among other things, for the building of a suitable manu-
facturing plant and the concentration of the Company’s scattered
operations, with the exception of the engine plant, at one location in
Pontiac, Michigan. As a result of this reorganization a substantial
loss was recorded in the year 1927, and operations in 1928 have also
been adversely influenced. The Company’s new products have been
well received. Important economies have resulted from the new
manufacturing facilities made available and, although the year 1928
resulted in a loss, it is believed that the period of readjustment is now
completed.
IN LINE with one of the fundamental policies of the Corporation-
decentralized operations with coordinated control-the following
changes have been made during the past year in the Corporation’s
subsidiary organizations :
DELCO-LIGHT COMPANY-From the Delco-Light Company there
have been created two organizations:$rst, the Delco-Light Company
which is engaged in the manufacture of farm electric power and light
plants and water systems to supply those localities that have not been
reached by transmission lines of central power stations; and second,
the Frigidaire Corporation which is manufacturing and merchan-
dising the well-known automatic refrigeration system “Frigidaire”.
The separation of the Delco-Light Company into these two operating
subsidiaries makes it possible for each organization to concentrate
on one line of activity and thereby to give greater intensity to its
operations. This in turn results in increased sales, a quicker turnover
of capital employed, and consequently a greater return to the
Corporation.
DELCO-REMY CORPORATION-AS of December 31, 1928 the Delco-
Remy Corporation has been reorganized. From this subsidiary there
have been created three companies:Jcirst, the Delco-Remy Corporation
which is engaged in the manufacture of starting, lighting and ignition
systems, horns, locks and storage batteries for motor cars; second,
the Delco Products Corporation which is engaged in the manufacture
of aviation ignition systems, Lovejoy shock absorbers and fractional
horsepower electric motors used by Frigidaire; and third, the Guide
Lamp Corporation, which was formed by the purchase in 1928 of the
Guide Lamp Company of Cleveland, Ohio, and its consolidation with
the automobile lamp business previously carried on by the Delco-
Remy Corporation. The consolidation of the cowl and tail lamp busi-
ness previously carried on by the Delco-Remy Corporation with the
Guide Lamp Company, one of the outstanding automobile lamp
companies, enables the Corporation to take a more aggressive position
in the development of satisfactory lighting equipment. This step will
make for better safety factors in driving automobiles at night, which
is a most important consideration.
It is the belief, based upon the former experience of the Corpora-
tion, that the decentralization of these activities into separate and
dis tint t responsible managements will mean increased effectiveness
from every standpoint.
18
LACK OF space makes it impossible to deal separately with each of the
Corporation’s activities. Due to the special nature of Ethyl Gasoline
Corporation, its purpose and prospects have been mentioned in
previous reports. During the year under review gratifying progress
has been made and there has resulted a satisfactory profit. For the
sake of those who may not be familiar with the previous record, it
might be stated that Ethyl Gasoline Corporation was organized to
commercialize an important development emanating from the Cor-
poration’s research activities. By the addition of a very small amount
of tetra-ethyl lead, it is possible to so change the characteristics of
ordinary gasoline as to enable the compression of the engine to be
materially raised. In view of the fact that the performance as well as
the economy of operation of any engine of the automotive type is
increased through higher compression, it naturally follows that this
development makes possible either subs tan tiall y increased power
from the same size of engine or greater fuel economy. As a matter of
fact, the discovery of this principle and its exploitation has resulted
in much progress being made in coordinating the present-day fuel
with the present-day engine, with resulting increases in efficiency and
effectiveness. Further progress is bound to be made in that direction.
The Ethyl Gasoline Corporation has contracts with the most im-
portant oil producers and distributors for the distribution of its
products. It is believed that this company will continue to contribute
increasingly to the Corporation’s earnings. General Motors Corpora-
tion owns a one-half interest in Ethyl Gasoline Corporation.
PREVIOUS ANNUAL reports have dealt with the various plans which
have been developed by the Corporation for the purpose of promoting
the well-being of its operating organization. Stockholders must
necessarily appreciate that, irrespective of the number of millions of
dollars that the Corporation may have invested in real estate, build-
ings, machinery, inventories or cash, and while recognizing the
essential part that such investments play, yet after all the ability to
capitalize that investment in the form of a satisfactory profit from
year to year, depends upon the loyalty, efficiency and effectiveness of
the operating organization. It is believed that General Motors Cor-
poration is taking an advanced stand in establishing the principle
that each member of the organization is entitled, in addition to the
daily wage, to an opportunity to participate financially, in some form
or other depending upon his relative position, in the progress of the
Corporation. In this way a partnership relationship to the business
is developed, the effect of which upon the efficiency of the organization
is an important consideration.
Due to the rapid growth of the Corporation’s business and the
resultant enlargement of its earnings, the plans adopted in applying
this principle of participation have already substantially furthered
(as in the future they shculd continue to further) the attainment by
the members of the organization of financial independence in greater
or less degree. This should and will, if properly dealt with, have the
effect of making possible a higher standard of achievement, not only
through the stimulating effect of financial incentive, but also by
facilitating the maintenance of an efficient personnel. Individuals who
have been loyal and effective members of the organization for many
years but whose effectiveness is declining for any cause whatsoever,
must be replaced if efficiency is to be maintained. Means should be
provided whereby this can be effected without injustice and without
resulting hardship to themselves or their dependents. They are - entitled to that consideration. Financial independence, even in limited
degree, enables the situation to be dealt with, having solely in mind
the prime necessity of efficiency. Younger men can then take up the
burden-men having their position in life to create; men with new
ideas, new enthusiasm and ambition to do bigger things. This policy
cannot help having a stimulating influence, besides making possible
the maintenance of a high standard of efficiency.
MANAGERS SECURITIES COMPANY-This plan was inaugurated in 1923
for the purpose of enabling the more important executives of the
Corporation to acquire a substantial interest in the Corporation’s
common stock. It is essential, in developing a personnel of the degree
of ability required to cope with the Corporation’s tremendous
operating and financial problems, that the more important executives
should be placed in a position from the standpoint of financial reward
comparable to what they would occupy were they conducting a
business on their own individual account. In no other way, it is
believed, can the Corporation attract to its organization the type of
executive absolutely essential to its continued success. This plan took
the form of Managers Securities Company. It continues to justify
its purpose. At a meeting of the General Motors stockholders on
May 11, 1927 a plan was approved which provided for the pur-
chase over a period of years of a substantial block of common
stock by the Corporation to be available for the formation of a
second Managers Securities Company at the expiration of the
present plan at the end of 1930. Whatever form the new plan may
take will be submitted to the stockholders, in due course, for final
approval.
BONUS PLAN-There were allotted during the year 195,570 shares of
the new $10.00 par value common stock as bonus awards to 2,513
employes for conspicuous service during the year. Under the terms of
the Bonus Plan the stock to be allotted is purchased in the open
market and the cost thereof charged against earnings. Bonus awards
by years since the inception of the plan, including the distribution
for 1928, are set forth elsewhere in this report.
EMPLOYES SAVINGS AND INVESTMENT PLAN-This plan was originally
adopted in 1919 and has been modified in detail as experience has
justified. It now provides that employes may make monthly or semi-
monthly payments to the Employes Savings Fund not to exceed 20%
of their wages and not to exceed an annual total of $300. For each
dollar put into this fund by an employe, the Corporation puts fifty
cents in to the Employes Investment Fund which is credited to the
employe over a period of five years. Employes have the right to with-
draw their savings from the Savings Fund, plus interest, but if they
withdraw before the end of five years, they are subject to certain
forfeitures in respect to the Corporation’s contribution to the In-
vestment Fund, except that the savings may be applied to the pur-
chasing or building of homes without losing any benefits of the plan
whatsoever. Since this plan has been inaugurated 18,400 employes
have utilized it to assist in the buying and building of homes. At the
close of 1928, 158,753 employes, or 89.0% of those eligible, were
participants in this plan.
At the end of 1928 the fifth class, which was that of 1923, matured
and as a result there was paid to 12,033 employes, the following:
On account of their savings - - - $5 1,592,620
On account of 67$ interest on savings - 601,490
On account of amount accumulated in the In-
vestment Fund, representing accumulation on
account of contributions made by the Corpora-
tion five years ago (this amount is represented
by 147,185 shares of new $10 par value com-
mon stock of the Corporation at market value
at the time of distribution) - - - 11,995,578*
This makes a total value of - - - $14,189,688
An employe who paid in $300 during the year 1923 received in
January, 1929 on maturity, cash and securities having a market value
*Note: This amount is not the same as shown in Employes Savings and Investment statement on page 38, because that statement shows cost of stock to Corporation, whereas this amount represents
the market value of said stock at time of distribution as stated.
of $2,680. This was only possible due to the fact that through the
investment of the Corporation’s contribution in common stock of the
Corporation the employe became, in a measure, a partner in the
success of the Corporation’s activities in which he plays a part. A
summary of the results of the Savings and Investment Plan from
inception to date is shown on page 38.
GROUP INSURANCE PLAN-The Group Insurance Plan, applicable to
all employes of General Motors, its subsidiaries and affiliated com-
panies, was inaugurated in 1926. The results of this plan have been
highly satisfactory. At the close of 1928, 180,383 employes, or 98.3%
of those eligible, were insured under the provisions of the plan.
During the year 1928 General Motors lost, through death, 1,041 of its
employes insured under this plan. The families of a large percentage
of those employes were dependent, during the period of readjustment,
on the funds made available by this plan. During the year the plan
was enlarged to include increased death benefits and in addition
health and non-occupational accident insurance.
PREFERRED STOCK PLAN-This plan, inaugurated in 1924, recognized
the importance of affording a suitable investment for the Corpora-
tion’s employes, particularly those unfamiliar with the selection of
proper securities for investment. The plan provides for the sale of
General Motors preferred stock to employes, who may subscribe in
amounts proportionate to their earnings but not to exceed ten shares
per employe in any one year, to be paid for through monthly instal-
ments over a period of one year. As a special inducement the Corpora-
tion makes an extra payment of $2.00 per share each year for a period
of five years to employes availing themselves of this offer. This plan
is particularly of value to employes as the Savings and Investment
Fund classes mature. It enables them to obtain a security of standing
and worth in which such funds may be safely invested at an unusually
high rate of return, otherwise the purpose and value of the Savings
and Investment
recorded on page
to by employes.
Plan itself is likely to be jeopardized. There is
39 the number of shares purchased and subscribed
EXECUTIVE EDUCATIONAL WORK-The annual report of 1927 dealt
with the necessity of the development, through proper selection and
training, of employes having potentiality for responsibilities of
management throughout the Corporation’s operations. There is a
full realization of the importance of this problem as affecting the
future prosperity of the Corporation. For that purpose the Corpora-
tion has provided a building and equipment at Flint, Michigan, one
of its largest manufacturing centers, and is operating its educational
work under the designation of General Motors Institute of Tech-
nology. Aside from the investment in the building and equipment,
practically the entire cost of operation is covered by income received
from those enjoying the privileges of this institution, the contribution
on the part of the Corporation being of practically negligible amount.
Although this activity has been under development in a limited way
for a number of years, the work is really only beginning. It is expected
that rapid development will take place in giving special training to an
increasing number of the members of the organization. This is bound
to result in an improvement in the efficiency and effectiveness of the
Corporation’s operating organization.
HOUSING FOR EMPLOYES -Previous reports have from time to time
dealt with this subject. The policy has in no sense been changed.
Sale of property to employes has continued during the year.Additional
sums have been temporarily advanced for the erection of additional
houses on property already owned by the Corporation. It is believed
that every proper incentive and facility should be offered by the
Corporation to promote home building and home ownership on the
part of its employes. In addition to this it is important that employes
should be protected against abnormal costs. The following subsidiaries
continue to handle this phase of the Corporation’s activities: Modern
Housing Corporation, Modern Dwellings Limited, Bristol Realty
Company and New Departure Realty Company. The assets of these
companies are not consolidated in the balance sheet of the Corpora-
tion, but the latter’s investment in the same is included in the invest-
ment in subsidiaries and affiliated and miscellaneous companies not
consolidated as shown on page 31.
PREVIOUS REPORTS have dealt with these items and pointed out the
relatively small amount at which they are carried on the Corporation’s
balance sheet. It is in line with precedent to recognize goodwill in
substantially the manner that it is dealt with in the financial state-
ment, yet in the broader aspect of things this is an entirely inadequate
recognition of such an important factor in any institution. General
Motors differs from institutions in other industries, among other ways,
through the fact that the stability of its position and its future success
are predicated to an important degree upon the favorable attitude
of a tremendous majority of the public both at home and abroad, who
are either in a position or who will eventually come into a position
where they are prospects for one or another of the Corporation’s
various products. Irrespective of how impressive the balance sheet
may be, the intangible item of the goodwill of the public toward the
Corporation, its policies and its products is of incalculably greater
value. That principle is fully recognized and the policy will continue
to be to conduct the operations of the Corporation with a view to
increasing the value of this most important asset.
DURING THE year 1928 there have been no important changes in
policy. While fully recognizing the importance of constructive
decisions on the many daily problems that present themselves, con-
sideration is at all times being given to the fact that the business must
go forward; and that however effectively to-day’s task may be
accomplished, a better result is essential to-morrow if continued
progress is to be recorded. The recognition of this principle and the
spirit of cooperation and confidence in one another which it is believed
exists universally throughout the Corporation’s extensive organiza-
tions both at home and abroad, will be outstanding factors in in-
fluencing the future of the institution.
It is the purpose of this report to record such important events as
occurred during the year under review as will be of interest to the
stockholders. It is not within its province to forecast or discuss
probabilities for the year 1929.
By order of the Board of Directors
LAMMOTDUPONT
Chairman
ALFRED P. SLOAN, JR.
President
26
i i, . . i i
,, 1” i <!‘,i \I.
.
Year Ended Dec. 31, 1928
PROFIT from operations and income from investments, after all expenses incident thereto, but before providing for depreciation of real estate, plants, andequipment - - - - - - $362,853,572.46
Provision for depreciation of real estate, plants, and equipment- 30,515,441.44
Year Ended Dec. 31, 1927
$326,126,716.54
26,928,657.89
NET PROFIT f rom operations and investments - - $332,338,131.02 Non-operating profit (net) - - - - -
$299,198,058.65 9,916,560.05 2,766,642.08
NET PROFIT - - - - - - - $342,254,691.07 $301,964,700.73
LESS provision for: Employes bonus - - - - - - $3 12,408,594.97 $ 10,488,071.53 Amount due fi!Ianagers Securities Company - - 12,408,594.97 Employes savings and investment fund -
10,488,071.53 - 10,470,074.77
Special payment to employes under stock subscrip- 7,214,661.93
tion plan - - - - - - 58,976.OO 40,412.OO
Total - - - - - $ 35,346,240.71 $ 28,231,216.99
NET INCOME BEFORE INCOME TAXES - - $306,908,450.36 $273,733,483.74
LESS provision for United States and foreign income taxes - - - - _ - _ 33,349,359.75 34,468,759.22
NET INCOME FORTHE YEAR - - - - $273,559,090.61 $239,264,724.52
GENERAL MOTORS CORPORATION’S PROPOR- TION OF NET INCOME - - - - $272,344,269.93
Dividends on preferred and debenture capital stocks: Seven per cent preferred - - - - - $ 9,168,577.83 Six per cent preferred - - - - - 98J54.50 Six per cent debenture - - - - - 138,024.50
Total - - - - - $ 9,404,756.83
$238,319,009.48
$ 8,850,590.50 104,911.50 153,828.OO
$3 9,109,330.00
AMOUNT EARNED ON COMMON CAPITAL STOCK *$262,939,513.10 “$229,209,679.48 -~--
* Note: Including the General Motors Corporation’s equity in the un- divided profits of General Motors Acceptance Corporation (loo%), Yellow Truck & Coach Manufacturing Co. (S0.00270), Ethyl Gasoline Corpo- ration (SO$!&), General Exchange Insurance Corporation (Loose), and Vauxhall Motors, Limited (lOOo/,), th e amount earned on the common capital stock is - - - - - - - - - $267,063,351.53 $225,995,495.76
SURPLUS at beginning of year -
Year Ended Year Ended Dec. 31, 1928 Dec. 31, 1927
$187,819,083.30 $3 89,341,318.47
General Motors Corporation’s proportion of Net Income, per Summary of Consolidated Income - - - 272,344,269.93
Capital surplus arising through the sale above par of 250,000 shares of seven per cent preferred capital stock _ _ - - _ _ _ _ -
Capital surplus arising through the exchange of six per cent debenture and six per cent preferred capital stocks for seven per cent preferred capital stock - 40,890.OO
Amount transferred to reserve for sundry contingencies, by order of the Board of Directors - -
Total - - - - - -
LESS cash dividends paid or accrued:
Seven per cent preferred capital stock - Six per cent preferred capital stock - - Six per cent debenture capital stock - -
Total - - - - - -
40,890 .oo
238,319,009.48
4,104,166.75
75,375.oo
7.5,375*00
$460,163,353.23 $33 1,764,494.70
$ 9J68J77.83 $ 8,850,590.50 98,154.50 104,911.50
138,024.50 153,828.OO
$4 9,404,756.83 $3 9,109,330.00
Common capital stock:
Mar. 12-($1.25 on 17,400,OOO shares in 1928) $ 21,750,000.52
June 12 ($1.25 on 17,400,OOO shares in 1928) 21,750,000.45 July 3 ($2.00 extra on 17,400,OOO shares in 1928) 34,800,OOO.OO Sep. 12 ($1.25 on 17,400,OOO shares in 1928) - 21,750,000.43 Dec. 12 ($1.25 on 17,400,OOO shares in 1928) - 21,750,000.37
($2.50 extra on 17,400,OOO shares in 1928, payable Jan. 4, 1929) - - - 43,500,000 .oo
Total - - - - - - - $165,300,001.77
$ 17,395,751.75 17,396,603.00 17,396,603.00 17,397,123.00 21,750,000.65
43,500,000.00
$134,836,081.40
Total cash dividends paid or accrued - $174,704,758.60 $143,945,411.40
SURPLUS at end of year - - - - - $285,458,594.63 $187,819,083.30
Note: See pages 34 and 35 for detail of dividend payments made prior to the year 1928.
28
GENERAL MOT
ASSETS
CURRENT ASSETS: Dec. 31, 1928 Dec. 31, 1927
Cash - - _ _ - - - - _ $ 99,189,838.71 $ 132,272,217.73 United States Government securities - - - - - 112,351,174.48 75,542,697.94 Other marketable securities - - - - - - - 4,364,216.70 361,282.OO Sight drafts with bills of lading attached, and C. 0. D. items - 9,273,824.28 14,649,097.20 Notes receivable - - - - - - - - - 8,788,452.77 1,560,677.71 Accounts receivable and trade acceptances, less reserve for doubtful
accounts (in 1928, $1,229,649.24; in 1927, $2,293,437.10) - 34,565,680.14 31,646,088.89 Inventories at cost or market, whichever is lower - - - 196,692,868.08 172,647,715.62 Prepaid expenses - - - - - - - - - 3,583,232.11 3,600,345.42
TOTAL CURRENTASSETS - - - - - $ 468,809,287.27 $ 432,280,122.51
FIXED ASSETS:
Investment in subsidiaries and affiliated and miscellaneous com-
panies not consolidated - - - - - - $ 117,819,123.62 $ 98,262,013.86 General Motors Corporation capital stocks held in treasury for corpo-
rate purposes (in 1928,495,744 shares common $49,528,067.89;
4,215 shares 7y0 preferred $525,125.30) - - - - 50,053,193.19 31,338,034.37 Real estate, plants, and equipment - - - - - 542,987,154.81 480,473,508.46 Deferred expenses - - - - - - - - - 19,552,634.95 12,436,188.01 Goodwill, patents, etc. - - - - - - - 43,673,475.64 43,687,708.37
TOTAL FIXED ASSETS - - - - - $3 774,085,582.21 $ 666,197,453.07
TOTAL ASSETS - - - - - - - - $1,242,894,869.48 $1,098,477,575.58 -- -
S CORPORATION
LIABILITIES, RESERVES, AND CAPITAL
CURRENT LIABILITIES: Dec. 31, 1928 Dec. 31, 1927
Accounts payable - - - - - - - - $ 61,244,891.61 $ 51,828,549.12
Taxes, payrolls, and sundry accrued items - - - - 24,180,315.35 20,671,868.38
United States and foreign income taxes - - - - - 33,225,608.63 35,224,309.20
Employes savings funds, payable during 1929 - - - 9,302,494.26 6,564,202.03
Accrued dividends on preferred and debenture capital stocks - - 1,567,672.96 1,567,218.63
Extra dividend on common capital stock, payable January 4, 1929
(for 1927, payable January 3,1928) - - - - - 43,500,000 .oo 43,500,000 .oo
TOTAL CURRENTLIABILITIES - - - - $3 173,020,982.81 $ 159,356,147.36
RESERVES:
Depreciation of real estate, plants, and equipment - - - $ 162,680,112.72 $ 141,872,939.54
Employes investment fund - - - - - - - 9,019,707.50 6,316,320.00
Employes savings funds, payable subsequent to 1929 - - 23,100,639.43 14,933,833.65
Employes bonus - - - - - - - - - 14,078,560.38 11,715,710.51
Sundry contingencies - - - - - - - - 2,532,541.89 3,943,565.78
TOTAL RESERVES - - - - - - $ 211,411,561.92 $ 178,782,369.48
CAPITAL STOCK AND SURPLUS:
Capital stock of General Motors Corporation:
Seven per cent preferred* (authorized, $500,000,000) - - $ 131,108,300.00 $ 130,835,700.00
Six per cent preferred (authorized and outstanding) - - 1,579,500.00 1,713,400.00
Six per cent debenture (authorized and outstanding) - - 2,228,200.00 2,366,900.00
Common, $25 par value (authorized, 30,000,OOO shares. Issued
and outstanding, 17,400,OOO shares) - - - - 43 5,000,000 .oo 435,000,000.00
TOTAL CAPITAL STOCK- - - - - - $ 569,916,OOO.OO $ 569,916,OOO.OO
Interest of minority stockholders in subsidiary companies with
respect to capital and surplus - - - - - - 3,087,730.12 2,603,975.44
SURPLUS - - - w _ - - - - 285,458,594.63 187,819,083.30
TOTAL CAPITAL STOCK AND SURPLUS - - $ 858,462,324.75 $ 760,339,058.74
TOTAL LIABILITIES, RESERVES, AND CAPITAL - - $1,242,894,869.48 $1,098,477,575.58
* The seven per cent preferred capital stock is preferred as to assets and dividends over all other capital stocks of the Corporation under charter amendments adopted June 16, 1924.
HASKINS & SELLS CERTIFIED PUBLIC ACCOUNTANTS
EXECUTIVE OFFICES
15 BROAD STREET
NEW YORK OFFICES IN THE PRINCIPAL CITIES OF
THE UNITED STATES OF AMERICA
- AND IN -
LONDON, PARIS, BERLIN, SHANGHAI, MANILA MONTREAL, HAVANA, MEXICO CITY
CABLE ADDRESS “HASKSELLS”
General Motors Corporation
Broadway at 57th Street
New York
We have made a general examination of your accounts for the pur-
pose of verifying the stated financial condition at December 31, 1928,
and of reviewing the operations for the year ended that date, and
have satisfied ourselves as to the general correctness of the accounts.
We have verified the provision for your Federal income tax liability
for the year 1928, but have made no study of the existing situation
with respect to tax adjustments applicable to prior years, inasmuch
as you have a special department to handle such tax matters. We
have not examined the minutes of your governing bodies.
WE HEREBY CERTIFY that, subject to the above, the accompany-
ing Condensed Consolidated Balance Sheet, December 31, 1928 and
1927, and related Summaries of Income and Surplus for the years
ended those dates, in our opinion, are correct.
(Signed) HASKINS 8z SELLS
New York
February 11, 1929
IN THE condensed consolidated balance sheet of General Motors Corporation the
investment in subsidiaries and affiliated and miscellaneous companies not consoli-
dated is carried at $117,819,123.62 as of December 31, 1928, as compared with
$98,262,013.86 at December 31, 1927. This consists of investments in companies
not consolidated in the accounts of the Corporation.
A list of these investments and the value at which they are carried on the books
of the Corporation follow:
December 3 1, December 3 1, 1928 1927
General Motors Acceptance Corporation - - - $ 50,000,000.00
Yellow Truck & Coach Manufacturing Co. - - 30,669,251.51*
Ethyl Gasoline Corporation - - - - - ~50,000.00
General Motors Building Corporation - - - 7,695,777.35
Vauxhall Motors, Limited - - - - - - 6,219,181.47
Argonaut Realty Corporation - - - - - t&298,277.36
$43,750,000.00
24,09 1,000 .oo
750,000.00
8,627,635.95
4,245,442.11
3,145,317.90
Investment in Housing Facilities:
Bristol Realty Company - - - - -
House Financing Corporation - - - -
Modern Dwellings, Limited - - - - -
Modern Housing Corporation - - - -
New Departure Realty Company - - - -
425,000 .OO 425,000 .OO
170,000.00 190,000.00
162,665.55 141,550.09
10,149,733.11 8,935,368.93
240,561.63 227,602.04
Miscellaneous - - - - - - - 3,038,675.64 3,733,096.84
TOTAL INVESTMENT IN SUBSIDIARIES AND
AFFILIATED AND MISCELLANEOUS COM-
PANIES NOT CONSOLIDATED - - - $117,819,123.62 $98,262,013.86
* Of this amount, $9,668,251.51 is represented by Yellow Truck & Coach Manufacturing Co. 7y0 preferred stock.
Cash in Banks and on Hand
Notes and Bills Receivable:
. / i i
ASSETS
United States and Canada - - - - $279,083,829.83 Foreign _ _ _ _ _ - - - 43,549,868.62
Accounts Receivable - - - - - - - - -
Furniture and Equipment, less depreciation - - - - - -
Investments:
General Exchange Insurance Corporation - - $ 5,222,703.77
General Motors Acceptance Corporation of Delaware 134,831.78 Other _ _ _ _ _ - - _ 6,000 .OO
Deferred Charges - - - - - - - - - 1
TOTAL ASSETS - - - - - - - -
LIABILITIES
Capital Stock - - - - - - - - - - - Surplus _ _ _ - _ _ - - - - -
Undivided Profits - - - - - - - - - -
Ten Year Sinking Fund 6 y0 Gold Debentures, due February 1, 1937 -
Five Per Cent Serial Gold Notes:
$5,000,000 due annually March 1, 1929 to 1936 - - - -
Notes and Bills Payable:
Gold Notes, United States - - - - $152,374,000.00
Demand Notes, Canadian and Foreign - - - 18,444,032.29
Bankers Acceptances Discounted - - - 32,160,OOO.OO Bills of Exchange Discounted - - - - 3,237,105.49
Accounts Payable - - - - - - - - - -
Dealers’ Repossession Loss Reserves - - - - - - -
Accrued Interest Payable - - - - - - - -
Unearned Income - - - - - - - - - -
Reserves:
Receivables - - - - - - - $ 4,596,053.38
Contingencies - - - - - - - 1,000,000 .oo Taxes - _ _ _ - _ _ _ 2,076,098.28
Miscellaneous - - - - - - - 350,l Il.98
TOTAL LIABILITIES - - - - - - -
$ 55,397,794.59
322,633,698.45
1,158,598.72
1,605,189.15
5,363,535.55
4,399,178.87
$390,557,995.33
s 40,000,000 .oo
10,000,000.00
14,239,934.11
$ 64,239,934.11
48 ,OOO,OOO.OO
40,000,000 .oo
206,215,137.78
3,514,869.96
7,056,173.38
1,871,224.83
11,638,391.63
8,022,263.64
8390,557,995.33
NET SALES, net income, amount paid in dividends and the amount reinvested in the
business since the beginning of General Motors are shown in the following table.
Net income and amount reinvested in the business beginning 1922 include General
Motors Corporation’s equity in the undivided profits of subsidiarv and affiliated J
companies not consolidated. I
Cash $& Income Dis- bursed in Cash
Year Ended
Dec. 31 Net Sales
Net Income Available for
Dividends Preferred Dividends
Balance Available
for Common Stock
Dividends Dividends on Paid on Preferred and
Common Common Stock Stocks
1909t $29,029,875 $9,114,498 $417,621
1910-f 49,430,179 10,225,367 642,947
19117 42,733,303 3,316,251 842,074
1912$ 64,744,496 3,896,293 1,040,211
19131 85,603,920 7,459,471 1,048,534
1914$ 85,373,303 7,249,734 1,048,679
1915$ 94,424,841 14,457,803 1,048,964
1916$ 156,900,296 28,789,560 1,048,964
1917$ 172,677,499 24,780,916 1,048,964
19175 96,295,741 14,294,482 491,890
1918 269,796,829 14,825,530 1,920,467
1919 509,676,694 60,005,484 4,212,513
1920 567,320,603 37,750,375 5,620,426
1921 304,487,243 *3V~o,770 6,310,OlO
1922 463,706,733 54,474,493 6,429,228
1923 698,038,947 72,008,955 6,887,371
1924 568,007,459 51,623,490 7,272,637
1925 734,592,592 116,016,277 7,639,991
1926 1,058,153,338 186,231,182 7,645,287
1927 1,269,519,673 235,104,826 9,109,330
1928 1,459,762,906 276,468,108 9,404,756
$8,696,877
9,582,420
2,474,177
2,856,082
6,410,937
6,201,055
13,408,839
27,740,596
23,731,952
13,802,592
12,905,063
55,792,971
32,129,949
*44,990,780
-
-
-
-
-
-
-
$10,730,159
7,430,302
2,294,199
11,237,310
17,324,541
17,893,289
20,468,276
10,177,117
24,772,026
25,030,632
61,935,221
103,930,993
134,836,081
165,300,002
4.58y0
6.29%
25.390/,
26.70”/,
14.06%
14.47%
7.26%
40.91%
34.22%
19.49%
88.75%
35.89%
62.297*
48,045,265
65,121,584
44,350,853
108,376,286
178,585,895
225,995,496
267,063,352
-
30.48Y0
43.97yp
62.5770
59.9770
59.91%
61 .2370
63.19%
Total $8,780,276,470 $1,189,412,325 $81,130,864 $1,108,281,461 $613,360,148 58.39%
Income Reinvested
in the Business
$8,696,877
9,582,420
2,474,177
2,856,082
6,410,937
6,201,055
13,408,839
17,010,437
16,301,650
11,508,393
1,667,753
38,468,430
14,236,660
*6.5,459~.56
37,868,148
40,349,558
19,320,221
46,441,065
74,654,902
91,159,415
101,763,350 --
$494,921,313
Notes: General Motors Corporation was incorporated October 13,1916, succeeding General Motors Company, organized September 16, 1908. tF iscal years ended October 1st. 7 10 months ended July 31, 1911. $ Years 1912-1917, inclusive, are
fiscal years ended July 31st. 8 5 months ended December 31, 1917. * Deficit.
A DETAILED record of the dividends declared by quarters during 1928, together with the dates of payment, is as follows:
7% 6% 6% Date Stock Date Stock Preferred Debenture Preferred of of Common of of
Periods Stock Stock Stock Payment Record Stock Payment Record - -
1st Quar. $1.75 $1.50 $1.50 Feb. 1 Jan. 9 $1.25 Mar. 12,1928 Feb. 18,1928
2nd Quar. 1.75 1.50 1.50 May 1 Apr. 7 1.25 June 12,1928 May 19,1928
Extra 2.00 July 3,1928 May 19,1928
3rd Quar. 1.75 1.50 1.50 Aug. 1 July 9 1.25 Sep. 12,1928 Aug. 18, 1928
4th Quar. 1.75 1.50 1.50 Nov.1 Oct. 8 1.25 Dec. 12,1928 Nov.17, 1928
*Extra 2.50 Jan. 4,1929 Nov. 17, 1928
*The extra dividend of $2.50, payable January 4,1929 to stock of record November 17,1928, was declared November 8,1928.
The General Motors Company of New Jersey, organized September 16, 1908, paid regular
dividends of 7% per annum upon its 7y0 cumulative preferred stock, without interruption, be-
ginning with an initial payment on April 1, 1909. Since the organization on October 13, 1916 of
the present General Motors Corporation of Delaware, which succeeded the General Motors
Company of New Jersey, regular quarterly dividends have been paid, without interruption, on
the preferred and debenture stocks outstanding from their date of issuance. The initial quarterly
dividend of $1.50 a share on the present 6% preferred stock was paid February 1, 1917. The
initial quarterly dividend of $1.50 a share on the present 6% debenture stock was paid February
1, 1919. The initial quarterly dividend of $1.75 a share on the 70/c debenture stock was paid
May 1,192O. At a special meeting of stockholders on June 16,1924, the name of the 7y0 debenture
stock was changed to 7y0 preferred stock. The initial dividend on the present 7% preferred stock
was paid November 1, 1924.
Changes in the capital structure of General Motors Corporation with respect to the nature of
its common stock are as follows. When General Motors Corporation of Delaware was organized to
succeed General Motors Company, five shares of the common stock of the Corporation, par value
$100, were exchanged for one share of the Company’s stock, also par value $100. On and after
March 1, 1920 ten shares no par value common stock were issued in exchange for one share of the
old $100 par value common. On May 1, 1920 there was paid on the $100 par value common a
stock dividend of x share of the new no par common. During 1920, on May 1, August 2, and
November 1, there were paid stock dividends on the no par common, each amounting to l/40
share of no par common. On account of charter changes, the number of shares of common stock
was reduced in 1924 through the exchange of four shares of old stock for one share of new no par
value common. On September 11, 1926 a 50% dividend was paid in common stock. During
September 1927 two shares of new $25 par value common stock were issued in exchange for one
share of no par value common stock previously outstanding. At a special meeting of the stock-
holders on December 10, 1928, the authorized common stock of the Corporation was changed
from 30,000,OOO shares of $25 par value stock to 75,000,OOO shares of $10 par value stock, and
the exchange, effective on and after January 7, 1929, of two and one-half shares of new $10 par
value stock for one share of the old $25 par value stock was ratified.
The payments by years upon the common stock, since the organization of General Motors Corporation of Delaware, the present Corporation, follow:
1917-Common $100 par, $10.00. Initial $1 .OO was paid February 1, 1917, and thereafter $3.00 quarterly to and including February 2, 1920.
1918-Common $100 par, $12.00.
1919-Common $100 par, $12.00.
1920-Common $100 par, $5.50. On and after March 1,192O ten shares no par value common
exchanged for each share of $100 par value. Final dividend on $100 par was $2.50 cash and s share no par stock, paid May 1, 1920.
-Common no par, 75 cents cash and 3 /40ths of a share of no par value stock. Initial quar- terly payment of 25 cents cash and l/40 share of no par value stock was made May 1,
1920 and continued on August 2, and November 1, 1920. Stock dividend of l/40 share
quarterly was discontinued after November 1, 1920.
1921-Common no par, $1.00.
1922-Common no par, 50 cents. Quarterly dividend due February 1, 1922 was passed at meeting held January 4, 1922. “Special” dividend of 50 cents a share was paid December 20, 1922.
1923-Common no par, $1.20. Q uarterly dividend of 30 cents a share was initiated March 15, 1923 and continued to and including September 12, 1924.
1924-Common no par (old), 90 cents. After payment of three quarterly dividends of 30 cents a
share in 1924 the number of shares was reduced by issuing one share of new no par value stock for four shares of old. Initial dividend of $1.25 on this new no par value stock was paid December 12, 1924.
-Common no par (new), $1.25.
1925-Common no par, $12.00. This consisted of extras of $1.00 paid September 12, 1925 and $5.00 paid January 7, 1926, in addition to quarterly payments of $1.50 each.
1926-Common no par (before 50% stock dividend), $7.50. Q uarterly dividends of $1.75 each
were paid March 12, and June 12, and $4.00 extra was paid July 2. On September 11, a 50% increase in number of no par shares outstanding was made through payment of a stock dividend of x share on each share of no par value stock.
-Common no par (after 50% stock dividend), $7.50. On the increased number of shares quarterly dividends of $1.75 each were paid September 11 and December 11, and an extra of $4.00 January 4, 1927.
1927-Common no par, $8.00. Q uarterly dividends of $2.00 each were paid March 12, June 13,
and September 12, and $2.00 extra was paid July 5. In September two shares of new $25
par value stock were issued in exchange for each no par share.
-LCommon $25 par, $3.75. Initial quarterly dividend of $1.25 was paid December 12, and $2.50 extra was paid January 3, 1928.
1928-Common $25 par, $9.50. This consisted of quarterly payments of $1.25 with $2.00 extra paid July 3 and $2.50 extra paid January 4, 1929.
THE FOLLOWING tabulation shows sales of General iMotors cars by dealers to users,
as well as sales by manufacturing divisions of General Motors to their dealers:
/ Dealers Sales to Users
1928 1927 \ /
Divisions Sales to Dealers
1926 1925 1928 1927 1926
January- - - - 107,278 February - - - 132,029 March - - - - 183,706
April - - - - 209,367
En: _ - _ - _ - _ - 224,094 206,259
July - - - - 177,728 August - - - 187,463 September - - - 148,784
October - - - 140,883 November - - - 91,410 December- - - 33,442
Tot& - - - - 1,842,44.3
1925
81,010 102,025 146,275
180,106 171,364 159,701
134,749 158,619 132,596
153,833 80,539 53,760
53,698 64,97 1
106,051
136,643 141,651 117,176
101,576 122,305 118,224
99,073 101,729
52,729
25,593 125,181 99,367 76,332 30,642 39,579 169,232 124,426 91,313 49,146 70,594 197,821 161,910 113,341 75,527
97,242 197,597 169,067 122,742 85,583 87,488 207,325 173,182 120,979 77,223 75,864 186,160 155,525 111,380 71,088
65,872 169,473 136,909 87,643 57,358 78,638 186,653 155,604 134,231 76,462 83,519 167,460 140,607 138,360 89,018
86,28 1 120,876 128,459 115,849 96,364 60,257 47,587 57,621 78,550 73,374 56,129 35,441 60,07 1 44,130 54,117
1,554,577 1,215,826 827,056 1,8 10,806 1,562,748 1,234,850 835,902
The sales by makes of cars by General Nfotors divisions to dealers for the year
ended December 3 1, 1928, compared with the sales of preceding years, follow:
Passenger Cars: 1928 1927 1926 1925 1924 1923 1922 1921
BUICK - - - -
CADILLAC- - -
LA SALLE - - -
CHEVROLET - -
OAKLAND - - -
PONTIAC - - -
OLDS - - - -
OTHER* - - -
229,788 20,042 21,392
930,935
45,724 214,534
90,202 -
268,698 280,009 18,639 27,489 16,371 -
791,870 620,364
53,922 58,537 140,791 75,836
58,016 59,536 -
208,575 22,773
-
466,485
45,380 -
43,935 -
166,952 17,905
-
295,456
36,512 -
45,728 -
218,286 22,201
-
464,800
35,974 -
33,356 -
138,501 83,888 22,021 11,130
- -
240,390 75,667
20,853 12,661 - -
21,216 20,245 644 4,852
Commercial Cars: CHEVROLET- - -
OTHER* - - -
258,189 209,272 111,781 43,824 19,277 15,326 2,932 1,489 - 5,169 1,298 2,930 5,511 8,515 7,821 3,973
Totals: PASSENGER- - -
COMMERCIAL - -
MISCELLANEOUS* -
1,552,617 258,189
-
1,348,307 214,441
1,121,771 787,148 113,079 48,754
- -
562,553 24,788
-
774,617 443,625 208,443 23,841 10,753 5,462
97 2,385 894
Grand Total - - 1,8 10,806 1,562,748 1,234,850 835,902 587,341 798,555 456,763 214,799
* “Passenger Cars-Other” includes lines not now manufactured. “Commercial Cars-Other” includes lines not now manu- factured, also includes GMC trucks to the end of April, 1925, when the General Motors Truck Division was transferred to Yellow Truck & Coach Mfg. Co., the operations of which are not consolidated in the accounts of General Motors Corporation. “Miscellaneous” includes tractors not now manufactured.
THE TOTAL number of stockholders, all classes, by quarters, follows:
Year Ended December 31
First Second Third Fourth
Quarter Quarter Quarter Quarter
1917 1,927 2,525 2,669 2,920
1918 3,918 3,737 3,615 4,739
1919 8,012 12,523 12,358 18,214
1920 24,148 26,136 31,029 36,894
1921 49,035 59,059 65,324 66,837
1922 70,504 72,665 71,331 65,665
1923 67,115 67,417 68,281 68,063
1924 70,009 71,382 69,428 66,097
1925 60,458 60,414 58,118 50,917
1926 54,851 53,097 47,805 50,369
1927 56,520 57,595 57,190 66,209
1928 72,986 70,399 71,682 71,185
SALES OVERSEAS by the Export Organizations of General Motors follow:
Year Ended December 31
1922
1923
1924
1925
1926
1927
1928
Number of Net Cars and Sales Trucks Wholesale
21,872 $19,875,015
45,000 39,193,869
64,845 50,929,322
100,894 77,109,696
118,791 98,156,088
193,830 171,991,251
282,157 252,152,284
General Motors overseas assembly plants are located in London, England;
Copenhagen, Denmark; Stockholm, Sweden; Warsaw, Poland; Antwerp, Belgium ;
Berlin, Germany; Buenos Aires, Argentina; Sao Paulo, Brazil; Montevideo,
Uruguay; Port Elizabeth, South Africa; Adelaide, Brisbane, Melbourne, Perth and
Sydney, Australia ; Wellington, New Zealand; Osaka, Japan; Batavia, Java; and
Bombay, India. Warehousing operations are located in Madrid, Spain; Paris,
France; and Alexandria, Egypt.
A SUMMARY of the condition of unmatured Classes of the Employes Savings and
Investment Funds at December 31, 1928 (’ 1 d’ mc u lng the Class of 1923 which ma- tured December 3 1, 1928)) and the results of the matured Classes since establish-
ment of the plan in 1919, follows: Total Total
Unmatured Matured Aggregate Classes Classes All Classes
Employes Class Class (1923 to
Class Class (1919 to (1919 to
Class Class 1928 1922
Saaings Fund 1928
1923 1924 1925 1926 1927 1928 Inclusive) Inclusive) Inclusive) P--P
Net amount paid in $ 8 s by employes - 3,052,510 2,823,215 3,7087,095 B 17,8289,415
B 15 $ - Interest credited by 5,714,100 12,539,075 45,665,410 11,201,385 56,866,795
Corporation- - 713,042 622,189 654,268 720,236 933,940 425,981 4,069,656 2,089,238 6,158,894 P-P ~
Total - - - 3,765,552 3,445,404 4,361,363 6,434,336 13,473,015 18,255,396 49,735,066 13,290,623
Withdrawals by em-
63,025,689
ployes - - - 1,571,442 1,061,469 1,134,717 1,455,695 2,508,764 - 7,732,087 7,374,547 15,106,634 -- -
Balance credited to employes - - 2,194,110 2,383,935 3,226,646 4,978,641 m- 10,964,251 18,255,396 42,002,979* 5,916,076 47,919,055
~____ Employes
Investment Fund Amount paid in and
invested by Cor- poration - - - Income received 1,526,255 1,411,607 1,853,547 2,857,050 6,269,537 8,914,707 - 2,577,644 1,994,151
1,488,575 911,665 22,832,703 10,057,172 32,889,875
431,200 - 7,403,235 5,221,692 12,624,927 --__I_
Total - - - 4,103,899 3,405,758 3,342,122 3,768,715 6,700,737 8,914,707 30,235,938 15,278,864
Withdrawals by em-
45,514,802
ployes - - - 177,308 116,636 105,643 98,262 82,622 - 580,471 1,333,717 1,914,188 F-F- --
1 3,945,147 43,600,614 Balance- - - 3,926,591 3,289,122 3,236,479 3,670,453 6,618,115 8,914,707 29,655,467
Amount guaranteed to employes (50% of Savings Fund balance credited to employes; 100% priortol922Class) 1,097,055 1,191,967 1,613,323 2,489,320 5,482,125 9,127,698 21,001,488
--I___- Amount reverting to
Corporation (bal- anceinInvestment Fund after deduct- ing amount guaran- teed to employes) 2,829,536 2,097,155 1,623,156 1,181,133 1,135,990 -
- - 8,866,970
- -
5,070,099 26,071,587 --
1,171,257 10,038,227
Note:-Underthe1919,1920 and 1921 Planthe Corporation guaranteed to the employes in the Investment Fund an amount equal to one hundred per cent of their credits in the Savings Fund. Forfeitures in the Investment Fund on account of with- drawals did not revert to the Corporation. Beginning with the Class of 1922, the Plan was amended to provide that thereafter forfeitures in the Investment Fund revert to the Corporation and that the Corporation guarantee that the Investment Fund at maturity shall equal an amount equivalent to fifty per cent of the Savings Fund credits. The amount paid into the 1928 Investment Fund Class was not invested until 1929. The above figures do not include separate Funds established by foreign subsidiaries.
* Includes amounts applied by employes to purchase of homes (see page 21).
THIS PLAN, inaugurated in 1924, recognized the importance of affording a suitable
investment for the Corporation’s employes, particularly those unfamiliar with the
subject of selecting securities for proper investment. The plan provides for the sale
of General Motors preferred stock to employes who may subscribe in amounts
proportionate to their salaries but not to exceed ten shares per employe in any one
year, to be paid for through monthly instalments over a period of one year. As a
special inducement the Corporation makes an extra payment of $2.00 per share
each year for a period of five years to employes availing themselves of this offer.
A record of the results of this plan by years since its adoption follows:
Year Of&ring Price
Per Share
Number Number of Employes of Shares Purchasing Purchased
1924 $99.00 3,342 10,993 1925 99.00 3,633 14,005 1926 114.00 1,888 8,025 1927 119.00 3,245 13,971 1928 124.00 2,817 12,803 1929 124.50 *3,066 *13,538
*Returns incomplete at this date.
This plan is particularly of service to employes as the Savings and Investment
Fund classes mature. It enables them to obtain a security of standing and worth in
which such funds may be safely invested, otherwise the purpose and value of the
Savings and Investment Plan itself is likely to be jeopardized.
THE ANNUAL payrolls of General Motors Corporation, for 1921 and subsequent
years, not including certain affiliated companies, such as Yellow Truck & Coach
Manufacturing Company and Fisher Body Corporation prior to the acquisition of
the minority interest as of June 30, 1926, have been as follows:
1921 - - $ 66,020,481 1923 - - $138,290,734 1925 - - $X36,747,178 1927 - - $302,904,988 1922 - 95,128,435 1924 - 110,478,OOO 1926 - 220,918,568 1928 - 365,352,304
The number of employes of the Corporation, not including certain affiliated com- panies, for 1928 and prior years has been as follows: 1909 - - 14,250 1913 - - 20,042 1917 - - 25,427 1921 - - 45,965 1925 - - 83,278 1910 - 10,000 1914 - 14,141 1918 - 49,118 1922 - 65,345 **1926 - 129,538 1911 - - 11,474 1915 - - 21,599 1919 - - 85,980 1923 - - 91,265 1927 - - 175,666 1912 - 16,584 1916 - 25,666 *1920 - 80,612 1924 - 73,642 1928 - 208,981
* Beginning with the year 1920 figures shown in this table are averages for the year. ** Average for 1926 does not include Fisher Body prior to June 30th.
EACH YEAR there is credited to a bonus fund a percentage of the Corporation’s net
earnings after deducting 7% on the capital invested in the business. Prior to 1923
the sum so credited to the bonus fund was 10% of the net earnings of the Corpora-
tion. Since 1923, at which time the Managers Securities Company was organized,
the amount set aside for the bonus plan has been 5%. The fund is invested in
General Motors common stock. At the end of each year stock is awarded to em-
ployes on the basis of the degree to which their services individually have contri-
buted to the success of the Corporation. Stock so awarded is delivered one-fourth
at the time of the award and the balance in three equal annual instalments. A
record of the awards follows:
Year Number of
Bonus Awards
Number of Shares of Common Stock Awarded (b)
1918 3,884 196,095 1919 6,453 160,994 (c) 1920 6,578 63,725 (c) 1921 (4 (a> 1922 550 71,893 1923 647 90,511 1924 676 46,109 1925 943 138,128 1926 1,513 171,268 1927 1,998 109,119 1928 2,513 78,228
Total 25,755 1,126,070
(a) No bonus was available for the year 1921. (b) Eq uivalent number of shares on basis of $25 par value common stock. (c) In addition to the common stock awarded in 1919 and 1920, 18,934 shares of 7% preferred stock were awarded, of which 14,191 shares applied to the 1919 awards and 4,743 shares to the 1920 awards.
. . -1 . . 1
GENERAL MOTORS CORPORATION is primarily an operatmg concern ownmg tne
plants, properties and other assets of its manufacturing operations which are desig-
nated in this list as Divisions. It is also a holding company owning all or part of the
capital stock of other companies known as subsidiaries or affiliated companies. These
relations are indicated by numerals appended after the names of the companies:
1. Assets owned by General Motors Corporation. 6. Ah’ stock o,wned by General Motors oj Canada, Limited.
2. All stock owned by General Motors Corporation. 7. All stock owned by General Motors Export Company.
3. All common stock owned by General Motors Corporation. 8. AI1 stock owned by General Motors Acceptance Corporation.
4. Majority oJ stock owned by General Motors Corporation. 9. Ail stock owned by New Departure Manufacturing Company.
5. One-half interest owned by General Motors Corporation. 10. Majority oi stock owned by New Departure Manufacturing Co,
BUICK MOTOR DIVISIONS
Buick passenger cars
CADILLAC MOTOR CAR DIVISIONS - - - - - Detroit, Michigan Cadillac and LaSalZe passenger cars
CHEVROLET MOTOR DIVISIONS (Including Subsidiariesz) - Detroit, Michigan Chevrolet passenger and commercial cars produced in the manufacturing and assembly plants located as follows: Flint, Mich., motors, sheet metal and assembly; Detroit, Mich . , f orgings, gears, axles and wheels; Saginaw, Mich . , foundry; Bay City, Mich . , carburetors and hardened and ground parts; Toledo, Ohio, transmissions. Assembly plants in these cities: St. Louis and Kansas City, MO.; Janesville, Wis.; Oakland, CaZ;f.; Bu$bZo and Tarrytown, N. Y.; Norwood, Ohio and Atlanta, Ga. Export boxing plant at BZoomJ?eZd, N. J.
OAKLAND MOTOR CAR DIVISIONS - - - - - Pontiac, Michigan Oakland and Pontiac passenger cars
OLDS MOTOR WORKS DIVISION’ - - - - -
Oldsmobile passenger cars
Lansing, Michigan
GENERAL MOTORS OF CANADA, LIMITED~ - - - - Oshawa, Ontario Cadillac, LaSaZZe, McLaughlin-Buick, Oakland, Oldsmobile, Pontiac and Chevrolet passenger cars; Chevrolet commercial cars and General Motors Trucks. Plants at Oshawa and WaZkerviZZe, Ont. and Regina, Sask.
FISHER BODY DIVISIONS - - - - - -
Automobile body building plants located at Detroit, Lansing, Pontiac and Detroit, Michigan
Flint, Mich.; Bu$aZo and Tarrytown, N. Y. Extensive acreage of virgin hardwood timber in northern Michigan
FISHER BODY COMPANY OF CLEVELAND~ - - - - Cleveland, Ohio Automobile body building plants at Cleveland and Cincinnati, Ohio
FISHER BODY ST. LOUIS COMPANY~ - - - - St. Louis, Missouri Automobile body building plants at St. Louis and Kansas City, MO.; Oakland, Calif. and Janesville, Wis.
FISHER BODY COMPANY OF ATLANTAN
Automobile body building pIant
- - - - Atlanta, Georgia
FLEETWOOD BODY CORPORATIONS - - - -
Automobile Sody building plant for custom bodies Fleetwood, Pennsylvania
TERNSTEDT MANUFACTURING COMPANY~ - - - - Detroit, Michigan Hardware for automobile bodies and Frigidaire cabinets
THE NATIONAL PLATE GLASS COMPANY~ - - -
PZategZassfor automobile bodies. Plants at BZairsviZZe, Pa. and Ottawa, IZZ. Detroit, Michigan
FISHER LUMBER CORPORATIONS - - - -
(FISHER DELTA LOG COMPANY, subsidiary)
Memphis, Tennessee
Large tracts of virgin hardwood timber in Louisiana and Arkansas; saw mills at Ferriday and Wisner, La. and saw mill and automobile body woodworking plant at Memphis, Tenn.
FISHER BODY SERVICE CORPORATIONS - - - -
Automobile body parts depots and body servicing plants at Detroit, Mich. Detroit, Michigan
and Oakland, Calif.
ARMSTRONG SPRING DIVISION’ - - - - - -
Automobile chassis springs for passenger cars and trucks Flint, Michigan
BROWN-LIPE-CHAPIN DIVISIONI - - - - - Syracuse, New York Di$erentiaZ gears for passenger cars and trucks
DELCO-LIGHT COMPANY~ - - - - - - -
Delco-Light electric power and light plants and D-L residence water systems
Dayton, Ohio
DELCO PRODUCTS CORPORATIONS - - - - - - Dayton, Ohio Lovejoy hydraulic shock absorbers andfractional H. P. motors
DELCO-REMY CORPORATIONS - - - - - - Anderson, Indiana Delco-Remy starting, lighting and ignition systems for cars, trucks and coaches; Klaxon horns; Dual locks; Electrolocks and Delco batteries. Plants at Anderson and Muncie, Ind.
FRIGIDAIRE CORPORATIONS - - - - - - - Dayton, Ohio Frigidaire automatic refrigerators; automatic refrigerating units for house- hold and commercial use; ice cream cabinets and Frigidaire water coolers
for homes, o@ces, stores andfactories
GUIDE LAMP CORPORATIONS - - - - - - Anderson, Indiana Automobile head lamps, cowl lamps, stop and tail (amps. Plants at Anderson, Ind. and Cleveland, Ohio
HARRISON RADIATOR CORPORATIONS - - - - Lockport, New York Radiators for passenger cars and trucks. Plants at Lockport, N. Y. and Detroit, Mich.
HYATT BEARINGS DIVISIONS - - - - - Newark, New Jersey Hyatt anti-friction ro ZZer bearings
INLAND MANUFACTURING COMPANY~ - - - - - Dayton, Ohio Rubber and moulded parts, steering wheels and battery containers
JAXON STEEL PRODUCTS DIVISIONS - - - - - Jackson, Michigan Wheels, rims, tire carriers and rim parts, steel stampings
MORAINE PRODUCTS COMPANY~ - - - - - - Dayton, Ohio Durex oil impregnated metal bearings
MUNCIE PRODUCTS DIVISIONS - - - - - - Muncie, Indiana Transmissions, steering gears and chassis parts
NEW DEPARTURE MANUFACTURING COMPANY~ - - Bristol, Connecticut Ball bearings, coaster brakes, bells and bicycle hubs
SAGINAW CRANKSHAFT DIVISIONS - - - - - Saginaw, Michigan Crankshafts for automobile engines
SAGINAW MALLEABLE IRON DIVISION’ - - - - Saginaw, Michigan Malleable iron castings for passenger cars and trucks
SAGINAW STEERING GEAR DIVISION’ - - - - - Saginaw, Michigan Steering gears f or passenger cars and trucks
UNITED MOTORS SERVICE INC.~ - - - - - Detroit, Michigan Provides authorized national service for Delco-Remy starting, lighting and ignition systems; Delco batteries; Lovejoy h4ydrauZic shock absorbers; Klaxon horns; Jaxon rims, rim parts and wheels; Harrison radiators; New Departure ball bearings; Hyatt roller bearings; AC speedometers, air cleaners, oiZfiZters,gasoZine strainers,fueZpumps andgauges; Guide lamps
GENERAL MOTORS EXPORT COMPANY - - - New York, New York Distribution of General Motors cars and trucks in overseas territories not covered &y General Motors overseas operations; Zone OBces in fourteen cities abroad
GENERAL MOTORS LIMITEDZ- - - - - -
Distribution of cars and trucks in Great Britain and Ireland; assembly London, England
plant at London
GENERAL MOTORS INTERNATIONAL, A/9 - - - Copenhagen, Denmark Distribution of cars and trucks in Denmark, Norway, Esthonia, Iceland, Latvia and Lithuania; assembly plant at Copenhagen
GENERAL MOTORS NORDISKA, A/B” - - - - Stockholm, Sweden Distribution of cars and trucks in Sweden and Finland; assembly plant at Stockho Zm
GENERAL MOTORS w POLSCE SP. z 0.0.~ - - - - Warsaw, Poland Distribution of cars and trucks in Poland and Danzig Free State; assembly plant at Warsaw
GENERAL ~~OTORS CONTINENTAL, S. A.2 - - - - Distribution of cars and trucks in Belgium, Holland and Switzerland;
An twerp, Belgium
assembly plant at Antwerp
GENERAL MOTORS G.m.b.H.2 - - - - - - Distribution of cars and trucks in Germany, Austria, Czechoslovakia,
Berlin, Germany
Hungary and European Russia; assembly plant at Berlin
GENERAL MOTORS (FRANCE) S. A.2 - - - - - Paris, France Distribution of cars and trucks in France, Algeria, French Morocco and Tunisia; warehouse at Le Havre
GENERAL MOTORS PENINSULAR, S. A.2 - - - - Distribution of cars and trucks in Spain, Portugal, Spanish Morocco, Canary Islands and Gibraltar; warehouse at Madrid
Madrid, Spain
GENERAL MOTORS NEAR EAST, S. A.2 - - - - Distribution of cars and trucks in Egypt, Greece, Italy, BuZgaria, Arabia,
Alexandria, Egypt
Hejaz, Iraq, Italian Africa, Aden, Syria, Persia west of p5” E. L., Palestine, Jugoslavia, Roumania and Turkey; warehouse at Alexandria
GENERAL MOTORS ARGENTINA, S. A.2 - - - Buenos Aires, Argentina Distribution of cars and trucks in Argentina and Paraguay; assembly pZant at Buenos Aires
GENERAL MOTORS OF BRAZIL, S. A.2 - - - - SZo Paulo, Brazil Distribution of cars and trucks in Brazil; assembly plant at S2 Paula;
/
branch warehouses at Recife and Port0 Alegre /--
GENERAL MOTORS URUGUAYA, S. A.2 - - - Montevideo, Uruguay Distribution of cars and trucks in Uruguay; assembly pIant at Montevideo
GENERAL MOTORS SOUTH AFRICAN, LTD.~ - - Port Elizabeth, South Africa Distribution of cars and trucks in the Union of South Africa, Rhodesia, British Southwest Africa, Portuguese East Africa, Nyasaland, Bechuana- land and the Katanga district of the Belgian Congo; assembly plant at Port Elizabeth
GENERAL MOTORS (AUSTRALIA) PTY. LTD.~- - - Melbourne, Australia Distribution of cars and trucks in Australia; assembly plants at Adelaide, Brisbane, Melbourne, Perth and Sydney
GENERAL MOTORS NEW ZEALAND, LTD.~ - - Wellington, New Zealand Distribution of cars and trucks in New Zealand; assembly plant at WeZZington
GENERAL MOTORS JAPAN, LTD.~ - - - - - Distribution of cars and trucks in Japan, Korea, China and Manchuria; assembly plant at Osaka
Osaka, Japan
N. V. GENERAL MOTORS JAVA~ - - - - - - Batavia, Java Distribution of cars and trucks in the Dutch East Indies, French Indo- China, Siam and the Straits Settlements; assembly plant at Batavia
GENERAL MOTORS INDIA, LTD.~ - - - - - Bombay, India Distribution of cars and trucks in British India, Ceylon and Persia east of 56” E. L.; assembly pZant at Bombay
VAUXHALL MOTORS, LTD.~ - - - - - - - Luton, England Manufacture of VauxhaZZ motor cars and their sale in Great Britain and Ireland; pZant at Luton
DELCO-REM~ & HYATT, LTD.~ - - - - - - London, England Sales and service on all Corporation accessory products in the British Isles and on the Continent of Europe; technical and service headquarters at London
OVERSEAS MOTOR SERVICE CORPORATIONS - - - New York, New York Sales and service overseas on all Corporation accessory products
GENERAL MOTORS ACCEPTANCE CORPORATIONS - - New York, New York Finances wholesale distribution and retail credit sales of General Motors products; branch ofices in 77 cities in the United States, Dominion of
Canada and overseas
GENERAL EXCHANGE INSURANCE CORPORATION* - - New York, New York ProvidesJire-theft insurance service on cars sold at retail
MOTOR ACCOUNTING COMPANY~ - - - - - Detroit, Michigan Installs, audits and supervises standardized accounting practices for General Motors dealers and distributors
ARGONAUT REALTY CORPORATIONS - - - -
Erects and finances salesrooms, parts depots, garages and service stations Detroit, Michigan
for General Motors divisions, subsidiaries and afiiliated companies
BRISTOL REALTY COMPANY~O - - - - - Bristol, Connecticut Housing for employes in Bristol
GENERAL MOTORS BUILDING CORPORATIONS - - - Detroit, Michigan Owns and operates central ofice building in Detroit
MODERN DWELLINGS, LIMITED~ - - - - - Oshawa, Ontario Housing for employes at Oshawa
MODERN HOUSING CORPORATIONS - - - - - Detroit, Michigan Housingfor employes in Flint, Pontiac and JanesviZZe
NEW DEPARTURE REALTY COMPANY~ - - - - Bristol, Connecticut Housing for employes in Bristol
AC SPARK PLUG COMPANY~ - - - - - -
AC spark plugs, speedometers, air cleaners, oiZ$Zters, oil gauges, amme- Flint, Michigan
ters, therm0 gauges, fuel pumps, gasoline strainers, instrument panels, tachometers, film speed indicators, die castings and decorative tile
ETHYL GASOLINE CORPORATIONS - - - - New York, New York Markets Ethyl fluid to the oil rejning companies which manufacture Ethy I Gasoline
YELLOW TRUCK 8z COACH MANUFACTURING Co.4 - - Pontiac, Michigan General Motors Trucks, YeZZow Coaches and Yellow Cabs. Plants at Pontiac, Mich. and East Moline, Ill.
THE FOLLOWING sales organizations sell the products of the manufacturing units
The capital stock of these selling companies is owned by General Motors Cor- poration, except in the cases noted:
BUICK MOTOR COMPANY - - - - - -
BROWN-LIPE-CHAPIN COMPANY - - - -
CADILLAC MOTOR CAR COMPANY - - - - -
CHEVROLET SALES COMPANIES - - - - -
HYATT ROLLER BEARING COMPANY - - - -
KLAXON COMPANY - - - - - - -
OAKLAND MOTOR CAR COMPANY - - - - -
OLDS MOTOR WORKS - - - - - -
CADILLAC MOTOR CAR COMPANY OF CANADA, LIMITED~ -
CHEVROLET MOTOR COMPANY OF CANADA, LIMITED~ -
GENERAL MOTORS PRODUCTS OF CANADA, LIMITED~ - -
MCLAUGHLIN MOTOR CAR COMPANY, LIMITED~ - -
OAKLAND MOTOR CAR COMPANY OF CANADA, LIMITED~ -
OLDS MOTOR WORKS OF CANADA, LIMITED~ - -
- Flint, Michigan
Syracuse, New York
Detroit, Michigan
- Detroit, Michigan
Newark, New Jersey
- Anderson, Indiana
Pontiac, Michigan
- Lansing, Michigan
Oshawa, Ontario
- Oshawa, Ontario
Oshawa, Ontario
- Oshawa, Ontario
Oshawa, Ontario
- Oshawa, Ontario
In addition to the annual report and quarterly statements of earnings General Motors issues special booklets to injorm stockholders, employes, deafers and the public generally. A request to General Motors Corporation, Department oj Publicity, Broadway at 57th Street, New York, will bring a selected set
oj these booklets by mail.
PRESS OF CURRIER & HARFORD LTD:
PRINTED IN U. S. A.
NEW YORK
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